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Technology Stocks : Dell Technologies Inc.
DELL 125.97-1.0%Nov 25 3:59 PM EST

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To: edamo who wrote (114696)4/7/1999 10:50:00 AM
From: Chuzzlewit  Read Replies (5) of 176387
 
edamo, the options part of the strategy makes the entire concept of money flow even stranger. For example, consider a person who is a conservative investor who establishes a mildly bullish position with a covered call. So he writes a call, and the market maker is now long the call. There are several things he might do, depending on the situation and pricing and volatility etc., but one thing he could do is hedge his position by selling short the underlying stock. How does the money flow analyst deal with this transaction? There are so many hedging strategies that it is pointless to try to dissect them using this kind of analysis.

I think that the better approach is that the when the price of the stock is moving up it means that more people want to buy the stock at a particular price than want to sell it. When the price is moving down then more people want to sell than buy at a particular price. More than that my pussycat brain refuses to handle.

TTFN,
CTC
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